UPDATE: It would appear the right hand has no idea what the left hand is doing in Spain, as via Bloomberg:

*MONTORO SAYS VALENCIA HASN'T SOUGHT RESCUE

but

*VALENCIA TO TAP SPAIN'S REGIONAL FINANCING FACILITY

*VALENCIA GOVT COMMENTS IN STATEMENT ON WEBSITE TODAY

Just as today's largely expected announcement that the Eurogroup has formally agreed to accpet the Spanish bail out (details still lacking), the Spanish region of Valencia just became the second to officially demand a bailout following Catalunya's comparable announcement at the end of May, and has announced it will need to tap the government liquidity mechanism. Kneejerk reaction: EURUSD sharply lower and below 1.22 for the first time in days.

From Reuters:

Spain's heavily indebted eastern region of Valencia said on Friday it would apply for help under the government's 18 billion euro plan passed on Thursday aimed at helping regional finances.

The plan comes with strict conditionality that a region stick to its deficit cutting plans.

Concurrent with this announcement, Spain also announced an update to its deficit projections, whose details are meaningless as they will be revised adversely shortly, which confirmed that the Spanish economy continues to deteriorate at an accelerating pace.